Interesting article about Oil

wanghong

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! A. n1 z/ ~4 m$ {7 @2 ABelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
: Z7 W( G/ ~3 E$ Mthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
2 [3 k, P2 g7 _- o1 M+ k) S: O* tEXXON, BG, BP, Cheveron ....xyz.. oils

4 C! i2 q5 U1 CRecently OPEC reduced crude oil production twice over just a few
: |  h/ K8 T3 ~; }" t) |months. There are three wars going on in Gaza, Iraq and Afghandistan.
; c% v# P# z& @/ K2 t/ HA year ago these things would have spiked the price of crude oil by at
: A5 z% \- P+ ^2 hleast $50.00 per barrel. Today, oil price declined by a record amount.


# \0 y& y0 l! h& ]8 p: y1 n9 MThere are several reasons the price of oil is decreasing in the face
: o- q+ W- h7 hof so much news. These reasons are:

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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
3 |4 v3 E; r' h; tArabia.

# [$ o( `' q# }' g( D3 e: {
" z3 l4 {0 b5 z2. New natural gas has been found in Pennsylvania and West Virginia.
8 T; v$ e$ P9 p: j0 l! y' OThis is the largest find in North America.

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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
3 e/ _% h3 S  x* n' opotential per acre in some cases is astounding. Many countries are
2 S" j* O8 E( K  ~5 \racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
. m$ S8 ]5 E8 I  a0 uare now selling their used oil to bio-diesel producers. Every pork,
6 {) m  J6 Z, J8 ^2 O; ~) ocattle, turkey and chicken processing plant will soon sell their fat
/ A9 H# k3 g/ E2 x0 A8 qto bio-diesel producers. One pork processing plant in Oklahoma is
6 ?$ O$ G5 Y6 q' X  tproducing 30,000 gallons of bio-diesel per day from pork fat.
! M, X/ }% o" f1 R; g: H$ n

! Q  U3 o" \2 R- w  Z$ l$ A/ H6. There are 99 nuclear reactors in various stages of planning and
' C( q2 o  k' p6 s1 oconstruction around the world at this time. Several hundred more are
# x- F, o: D( a. r7 Z5 u: A# cexpected to be built in the future. Much of the energy they produce
will replace oil.


7. Every company in any form of transportaion business is replacing
  ~  l6 m8 u+ v' T: t7 I( ~- s5 xolder equipment such as trucks, airplanes, train engines, ships, etc.
2 D2 u1 M, @$ P5 K1 M& ^. Fwith new more fuel efficient equipment. Airlines and railway companies
" b/ w) K, t$ q8 gare experiencing 20% to 25% better fuel econony with the new
equipment.


% p2 c8 s7 f' l( N; KAirlines are flying airplanes with bio-fuel. They are finding the bio-
, R/ |" `# @" a; kfuel is cleaner and performs better than jet fuel.
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# b2 J5 l' Q/ s2 {, i  @8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.


! R2 h4 z$ ^$ c5 j' A9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
8 O9 v) v) x+ ~oil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
9 W0 ]  c. U. O! Wsource. Three new wind turbines are being erected every day in the US.


/ w( o+ E, W+ f# [: k$ @Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
5 l( [. }, s0 q- ^  sto control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
; l5 L3 W& {, `& L5 Cvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
; Y; ~: I+ A" C2 A& o  a2009 ... FYI-Only